Talks with the preferred bidder to run the bus service are at an advanced stage and the government is confident the service will meet people’s expectations, Transport Minister Joe Mizzi said yesterday.

Discussions with Spanish transport company Autobuses de Leon over the past two months had been positive and further details would be given in the coming weeks, he said.

We should be in a position to announce the details in two weeks’ time. There are still some meetings planned

The annual government subsidy is set to rise from €10 million to €29 million, with part of the cost to be covered by a new fare structure, including price rises. The new operator will take over the bus service in March.

Mr Mizzi yesterday insisted the Spanish company’s offer was much better than the bid by the competing Maltese consortium, but declined to comment on the exact amount.

“The preferred bidder has asked much less than the €45 million which Arriva had requested prior to its decision to quit its 10-year concession by mutual consent,” he said.

But he acknowledged the annual subsidy would have to increase from the €10 million in Arriva’s last year.

Insisting that the new service would be affordable, the minister underlines that the current running costs were still lower than Arriva’s.

He said the government was reviewing legal aspects of the bid, adding: “We should be in position to announce the details in two weeks’ time. There are still some meetings planned.”

Mr Mizzi was replying to questions from the press at the end of a meeting with the transport ministers of Greece and Cyprus, which focused on maritime affairs. The aim of the talks was to adopt a common position at EU level on issues related to the shipping industry.

Meanwhile, talks with Greek Shipping Minister Miltiadis Varvitsiotis and Cypriot Minister of Communications and Works Marios Demetriades focused on how the three states could adopt a common position on shipping issues.